AUD/USD: Bull Occupies the Territory, What is Next?

• AUD/USD has been bullish on the H4 chart.
• The pair trades well above the simple moving average 30.
• The pair has been on consolidation on the H1 chart.
• Intraday minor charts have been traded around a massive resistance.

AUD/USD- Technical Analysis-H4 Chart

The chart shows that the price has been heading towards the North with a good momentum. The pair had a rejection around 0.64550 and produced a bearish engulfing candle. However, the price upon finding its support made a breakout at 0.64550. Since then it has been moving towards the upside. As of writing, the pair still looks good for the buyers. A price breach above the last week’s high may push the price towards the North further. The price may find its resistance around 0.66225.

On the other hand, the price may consolidate. The buyers in that case may wait for the chart to produce a bullish reversal pattern at the consolidation support to go long in the pair.

Price Action Analysis- H1 Chart

The chart shows that the price has been moving towards the North by obeying a trend line. The price has been on consolidation around last week’s higher high. The level of 0.65050 has been working as consolidation support. A breakout below may drive the price towards the South. The buyers in that case may be waiting for the price to produce a bullish reversal pattern at the trend line’s support to go long in the pair again.

On the contrary, if the price breaches the trend line’s support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair.

Considering both charts, it seems that the bull is clearly ahead. The bear may make  some corrections, but overall it is the bull that may dominate in the pair.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn